Companies reporting this week

RETAILERS will continue to dominate the corporate arena this week when Debenhams, Body Shop, WH Smith and GUS step into the spotlight.

WH Smith is expected to report a fall in full-year profits on Friday, though investors will have to wait a little longer to find out what new chief executive Kate Swann has in store to turn the group around.

Sales have been hit by tough competition, particularly the sale of cheaper CDs by supermarkets, as analysts forecast annual profits of around £103m, down on last time when the figure of £122m represented an 8% fall.

The company recently pulled out of the US by selling two businesses for £49m, but future investor confidence is likely to hinge on the strategy of Ms Swann, the former boss of Argos who takes the helm at WH Smith next month.

Body Shop's most recent update to the market offered disappointment on the sales front so Wednesday's half-year results announcement will be crucial in supporting hopes of a turnaround at the group.

While less discounting and tough trading conditions left like-for-like sales 8% lower in the three months to May 31, Body Shop should still lift profits following an efficiency drive by its chief executive.

Peter Saunders took charge in February 2002 following three profits warnings in 18 months, later lifting annual profits in April by 76% to £20.4m. Analysts expect profits this year to be around £27m.

In July, insurer Prudential announced its first dividend cut since 1914 so sentiment among investors is unlikely to be particularly warm when the company reports new business figures for the third quarter on Thursday.

The latest data is expected to be solid rather than spectacular as the operating outlook for the Pru continues to be tough. In particular, analysts are concerned about adverse currency movements and lower margins.

Figures for the six months to June 30 showed the difficulties faced by the insurer in the current climate with operating profits down 27% to £397m and total insurance and investment sales stuck at £15.52bn.

Department stores group Debenhams could be poised to unveil its last full year results as a public company on Tuesday, as the takeover battle for the company approaches a conclusion.

Stockbroker Gerrard reckons it will turn in pre-tax profits of around £169m for the year, up from £154m in 2002. Debenhams has already indicated like-for-like sales growth of 3.7% for the period which compares well against its rivals. Shareholders will be voting on the 455p takeover bid by Baroness Retail at an emergency meeting next month, with any counter offer likely to emerge after the results.

Retailer GUS is expected to report another strong period of trading on Tuesday for its Argos chain of catalogue shops.

Analysts predict Argos will have continued to outperform its rivals, although sales may have slowed due to the summer heatwave. Stockbroker Fyshe believes the first half trading update will show like-for-like sales growth of 5% in the second quarter for Argos.

Hot temperatures are also likely to have wilted sales at the group's Homebase DIY chain while the Experian credit checking unit should deliver sales growth globally, particularly in the US.

Harpic-to-Calgon household products group Reckitt Benckiser raised expectations for the year in August after new products boosted growth in the first six months of 2003. The company's third quarter trading statement on Wednesday is expected to reveal more of the same but for different reasons.

Reckitt's US operation is likely to show a pick-up after declining to zero growth at the time of the Iraq war which fell in the second quarter.

Stockbroker Gerrard says the group's circle of innovation, investment and focus on its brands will also be reflected in a further expansion of its gross margin.